Hoag Hospital plans to lay off 175 employees

No doctors are set to lose their jobs but employees in Newport, Irvine and throughout system will be pink-slipped.

September 20, 2011|By Mike Reicher

Hoag Hospital announced plans Tuesday to lay off about 175 employees.

Accounting for about 3.5% of its 5,000-person workforce, the cuts will affect its hospitals in Newport Beach and Irvine as well as its network of health-care centers, according to Nina Robinson, vice president of corporate communications.

The layoffs were a result of "the weak economy, high unemployment" and insurance payment changes, according to a written statement.

None of the hospital's 1,400 physicians will be affected.

Most of the cuts will be among non-clinical staff members, such as medical billers, administrative assistants and human resources professionals.

Last year, Hoag opened a hospital in Irvine, hiring about 900 people in the process.

"Today's hard choices will correctly size our organization to the needs of our community, and allow Hoag to emerge from this challenging economic environment stronger and more effective," Robinson said in the statement.

Technology has increased outpatient care, prompting declining hospital admissions. Also, more uninsured people are unable to meet their hospital bills and Medicare may soon upend its current payment system.

"It turns out that hospitals are not immune to economic downturns," said Professor Paul Feldstein, who specializes in health-care management at UC Irvine's Paul Merage School of Business.